During the subsequent RWB inquiry, NYRA has refused to turn over thousandsof documents requested by RWB that could shed further light on NYRA actions.Specifically, the report contains these findings:
“The documentation received from NYRA indicates a
knowledge of the violation,
failure to report that information in a timely fashion and take corrective action.”
“While it is clear that NYRA knew they
ollecting an inappropriate rate….
they decided to continue to collect the excess takeout in violation of the Racing Lawwithout notifying any parties including the Board, the FOB, its tote company or its
auditors.”“NYRA has yet to submit several t
housand documents that NYRA had indicated
are responsive to the Board‟s request.”“[S]everal NYRA personnel, including CEO Charles Hayward, were notifiedand/or aware that the exotic takeout rate had expired.”
Mr. Hayward stated in an emailprior to the
rate expiration that “Since we are showing substantial losses in 2010 and
2011....we decided to
Mr. Hayward took action to keep from the public any
knowledge of the takeout error, asking a reporter to keep confidential NYRA‟s failure to
correct the takeout rate.
“As part of its 2010 financial statement audit, NYRA provided the incorrect exotictakeout rate to its independent auditor.”“NYRA‟s official explanation of this matter was that it was an „inadvertent error‟and a „mistake.‟
oard staff‟s review of NYRA records indicates that severalindividuals were well aware that the Chapter 115 takeout rates had expired.”
The report raises serious questions about the actions of senior management ofNYRA. This is not an isolated instance. Previously, I raised concerns about
management‟s failure to reveal the salaries of top officials.
Last month, I requested anindependent inquiry into equine deaths at NYRA facilities. While NYRA is a privateentity and not subject to direct control by the State, the franchise agreement that
permits NYRA to operate racing in New York does require NYRA‟s obligation to adhere
to the laws and rules governing racing in New York State. A failure to meet this mostfundamental obligation puts into doubt the co
ntinued efficacy of the State‟s franchise
agreement with NYRA.